Post #73: SAFEs, Stewardship & Raising for Impact Ventures

This week I tuned into a great webinar comparing early-stage fundraising strategies across the UK and US hosted by Angel Gambino (globally recognised executive, entrepreneur, investor, and advisor) and Anthony Rose (CEO and Co-Founder of SeedLegals). The session covered everything from SAFEs to SEIS tax deductibles — but what really stuck with me was this: investor fit matters more than ever.

In the Blue Economy space, where many startups are still pre-revenue and navigating complex development or regulatory pathways, founders often feel pressure to raise quickly — blasting out decks to any investor with a climate or sustainability badge.

But traction alone won’t guarantee funding. And the wrong capital partner can derail your mission just as fast as no funding at all.

This week’s post unpacks how Blue Economy startups can make better decisions around SAFEs, mission-locks, and alignment. Because in early-stage ventures, deciding when to raise is key, and raising capital is about building trust as much as building runway.

SAFEs, EIS/SEIS, and What Founders Should Know

SAFEs — or Simple Agreements for Future Equity — are a great fundraising tool introduced by Y Combinator for early-stage founders, especially in the US. They’re fast, founder-friendly, and don’t require setting a valuation right away. But for UK-based blue economy ventures, the waters are a little murkier.

First off, the basics:

• SAFEs allow investors to put money into your startup now in exchange for equity later, usually during your next priced round.

• EIS/SEIS are UK government schemes offering investors tax relief when they invest in eligible startups. They’re a major draw for UK angels.

The catch? SAFEs aren’t automatically EIS/SEIS eligible in the UK. To qualify, you may need to use a specially structured agreement or a convertible loan note instead. If you're unsure, speak to a tax specialist before raising (or SeedLegals) — a poorly structured SAFE could disqualify future investors from those tax perks.

In general:

• Use SAFEs in your first round if you are raising, especially for speed, simplicity, and where investor expectations are aligned.

• Be cautious in later rounds — a stack of SAFEs can dilute you significantly when converted. At that point, a priced equity round might give you more clarity, control, and equity retention.

• If going for EIS/SEIS, make sure your instrument is compliant — not all SAFEs will pass muster.

For impact-driven ventures working pre-revenue — where time, clarity, and trust are crucial — getting this balance right early on if going down this road makes all the difference.

Mission-Lock, Stewardship, and Shaping Your Capital Path

One of the reflections I had during the session was around mission-lock and stewardship structures — and how they can be both a protective shield and a limiting filter.

If you're building a purpose-driven venture in the Blue Economy, especially one dealing with long-term ocean health or systemic challenges, it's worth asking: What kind of capital do I actually want — and what comes with it?

Structures like:

• Mission-lock clauses (to embed purpose into your articles)

• Golden shares (to veto mission-diluting decisions)

• Dual-class shares (to retain control even as you raise)

…can help preserve the integrity of your mission as you scale.

But there’s a trade-off:

Going down this route narrows your pool of compatible investors. Not everyone is ready to buy into a stewardship structure — and that’s okay. The goal isn’t to appeal to everyone, but to attract the capital that aligns with your long-term intent.

The key takeaway here?

Have a clear idea of how you want to shape your capital stack — from values to control to dilution. These early decisions set the tone for how your company will grow and who you'll grow with.

Investor Fit is Everything

A SAFE won’t find you an investor.

Structure matters less than the relationship.

Here’s the reality:

Investors don’t get “fits” — you need to find the ones who already get what you’re doing.

That means doing your homework:

• Look at what they’ve already invested in (sectors, models, stages).

• Ask other founders what the investor is like after the deal.

• Gauge how active or passive they are — do they advise or just monitor?

• See how they speak about purpose, climate, or oceans (on social media, podcasts, blogs).

• Prioritise warm introductions, especially from other founders — this is worth more than the best cold pitch deck in the world.

In a pre-revenue Blue Economy venture, traction might look unconventional — a pilot, a key hire, a research grant. But the strongest signal across the board?

A coachable, resilient, coherent, effective and mission-driven founding team.

Ultimately, the right investor will back the people, not just the model (in some cases, the product doesn't even matter that much).

Traction Is King — But So Is Alignment

Fundraising in the Blue Economy — especially at pre-seed and seed — often means walking a fine line between purpose and commercial promise.

SAFEs can be a flexible tool, especially early on, but only when used with clear awareness of tax eligibility (like EIS/SEIS in the UK), future dilution, and how your fundraising journey may evolve in later rounds.

Mission-locks and stewardship models are powerful ideas — but they come with trade-offs. Restricting who can invest may protect your purpose, but it also narrows your capital pool. The key is having clarity on what kind of investor you want and where your venture is headed.

And above all: Investor fit is not optional. It’s existential.

Find the investors who understand your space, your timeline, and your traction — even if it looks different from SaaS growth charts. That alignment is your real moat.

Warm wishes

H